China and US Close to Deal on TikTok but Tariffs Loom

The United States and China appear close to striking an agreement on TikTok, though final approval may depend on Chinese demands for trade concessions, U.S. Treasury Secretary Scott Bessent said on Monday as talks resumed in Madrid.

The discussions are devoted to the divestment of TikTok by its Chinese parent company ByteDance, but they also relate to wider disputes over tariffs and long-standing economic tensions.

“Our Chinese counterparts have arrived with a very aggressive set of requests,” Bessent told reporters, referring to Beijing’s push for concessions. He stressed that Washington would not allow a social media app to deprive it of its national security priorities.

The negotiations are taking place at Spain’s historic Palacio de Santa Cruz. This is the fourth round of talks in as many months, all of them founded on efforts to manage strained U.S.-China trade ties and the looming deadline for TikTok’s divestiture.

Beijing, meanwhile, accused Washington of “unilateral bullying.” A spokesperson said U.S. actions could seriously impact on supply chains and global markets. According to Beijing, the U.S. is trying to cater to its allies by pushing them to impose tariffs in response to Chinese oil purchases from Russia.

Analysts expect the most likely outcome of the Madrid talks to be another extension of the deadline for ByteDance to sell TikTok’s U.S. operations or face a shutdown. Bessent said progress had been made on technical issues, but the larger political questions were harder to resolve. “From China’s point of view, the TikTok deal is tied to tariffs and other measures they have had to contend with for years,” U.S. Trade Representative Jamieson Greer added.

China’s Foreign Ministry insisted on repeating its position without adding new information. Tensions grew further when China launched a probe into U.S. chipmaker Nvidia, widely seen as retaliation for Washington’s export controls.

Both sides have been meeting in European cities since May, trying to resolve disputes that have their roots in tariffs first raised under President Trump. Those measures were founded on the belief that Beijing had gained unfair advantages, sparking tit-for-tat retaliation.

Experts remain doubtful of a breakthrough in Madrid. “I don’t expect anything substantial unless President Trump meets one-on-one with President Xi,” said William Reinsch, a Washington trade adviser. He argued that arranging such a summit was the real purpose of these talks.

Even if TikTok’s divestment is delayed, Bessent stressed that relations at the highest level remain stable and respectful.

Vocabulary List with Practice

1. Devote to

Definition: To give time, effort, or resources to something.

Example: The government has devoted to strengthening national security.

Practice Question: What kind of activities do you usually devote to on weekends?

2. Deprive of

Definition: To take something important away from someone.

Example: New laws must not deprive citizens of their basic rights.

Practice Question: Have you ever felt deprived of something you needed to succeed?

3. Relate to

Definition: To be connected with something, or to understand someone’s feelings.

Example: This policy directly relates to the ongoing trade negotiations.

Practice Question: Can you think of a movie character you strongly relate to? Why?

4. Refer to

Definition: To mention or speak about something.

Example: The minister referred to earlier agreements during the press conference.

Practice Question: When a teacher refers to your homework, how do you usually feel?

5. Cater to

Definition: To provide what is needed or desired, often for a specific group.

Example: The company caters to younger audiences through social media campaigns.

Practice Question: Which type of music app best caters to your taste?

6. Insist on

Definition: To demand something firmly and refuse to accept anything else.Example: China insisted on repeating its position in the talks.

Practice Question: Do you usually insist on your opinion in group discussions, or do you compromise?

7. Contend with

Definition: To have to deal with a difficult situation or problem.

Example: Farmers must contend with unpredictable weather each year.

Practice Question: What challenges do students often have to contend with during exams?

8. Founded on

Definition: To be based on something.

Example: The new trade measures were founded on concerns about unfair practices.

Practice Question: What values do you think a good friendship should be founded on?